TCP — Quick Sheet
Retirement Planning Strategies
Read time: ~5 minutes
One-minute revision
- Traditional vs. Roth turns on marginal rate now vs. at withdrawal
- Convert in low-bracket years; pay the tax from outside funds
- Pro-rata rule: conversions taxed proportionally across all traditional IRAs — no cherry-picking basis
- Roth IRA: no lifetime RMDs for the owner
- Most non-spouse inherited accounts: 10-year payout
- Watch cliffs: Social Security taxability and Medicare surcharges raise the effective rate